Center

PSA, China Shipping hold share

(Shanghai Daily)
Updated: 2007-01-26 13:54

Singapore port operator PSA International Pte and China Shipping Group Co are likely to be the single largest shareholders in the third phase of the Yangshan Deep-Water Port, a source familiar with the deal said yesterday.

Each holds 30 percent share of the third phase in the deal which was completed last month, the source confirmed.

Shanghai International Port (Group) Co, operator of China's busiest container port, is the second biggest shareholder with 20 percent while China Ocean Shipping Group Co and CMA-CGM each holds 10 percent of the remaining stake, according to the source.

The deal is waiting for approval from the State Council, China's Cabinet, the source said.

"We've got a big share in the third phase of Yangshan," said a China Shipping official who asked not to be identified. "But I can't reveal the shareholding."

SIPG, which also owns the first phase of Yangshan, said it can't give out details at this stage.

With an expected cost of nine billion yuan (US$1.16 billion), the third phase of the Yangshan Deep-Water Port will comprise seven berths.

The initial portion of the third phase, comprising four berths, will likely end construction by the end of this year, said Chen Xuyuan, SIPG president.

The whole third phase project is expected to be put into operation before the end of 2010.

Shanghai already leads the world in total cargo throughput and is third in container traffic.

Shanghai port moved 21.7 million TEUs (twenty-foot equivalent of units) in 2006, 20 percent more than 2005. Total cargo handled by the port jumped 21 percent to 537.4 million tons last year.

The Yangshan Deep-Water Port is designed to expand Shanghai's port handling capacity and allow the city to accommodate the world's biggest container ships. With the opening of the second phase last month, it now has nine berths along a waterfront of three kilometers.

When all four phases are completed, Yangshan will eventually have more than 30 berths by 2012 with a capacity of 15 million TEUs annually.